Proposal to Eliminate 1000-Krone Note in Fight Against Financial Crime
In a bold move aimed at curbing financial crime, Finance Minister Jens Stoltenberg has proposed the removal of the 1000-kroner note from circulation. This proposal comes as part of a broader effort to tackle the shadowy realm of the black economy—a term that refers to economic activities undertaken to evade taxation.
Stoltenberg’s plan includes a request to Norges Bank, the country’s central bank, to assess this initiative alongside additional measures designed to combat illegal financial practices. “We suggest this as one of many strategies to hinder criminal activities, making cash payments more challenging for offenders,” the Minister explained.
In tandem with the proposed note removal, Stoltenberg is advocating for a reduction in the maximum limit for cash payments—from 20,000 kroner down to 10,000 kroner. This change is intended to mitigate the ease with which criminals can operate in the cash economy, a sector which currently accounts for a mere 2% of all transactions in Norway, down from 12% in 2017.
During a recent interview, Stoltenberg pointed out the symbolic nature of the 1000-kroner note, which features designs inspired by blue waves rather than famous Norwegians like Munch or Undset. He did this while holding up the note, noting wryly, “I haven’t used Norwegian cash for a long time.”
The underlying rationale for these measures is stark. A report from Socioeconomic Analysis estimated that the black economy costs the Norwegian state a staggering 80 billion kroner annually, with direct tax losses accounting for 32 billion. However, quantifying the extent to which cash, particularly high-denomination notes, is used in this illegal activity remains a challenge.
The Minister emphasized that while eradicating all forms of economic crime is unattainable, these proposals represent significant steps forward in the government’s ongoing fight. “We cannot afford to become complacent or turn a blind eye,” he asserted.
Norges Bank’s director, Torbjørn Hægeland, confirmed that they are actively evaluating the composition of the nation’s banknotes. “We’re in discussions with Økokrim, the agency dedicated to combating financial and environmental crime, assessing how crime prevention factors into our decisions,” he stated.
Cash retains a vital role in the economy, particularly for those who are less digitally inclined. As such, the Minister assured that while the government seeks to reduce the presence of high-denomination notes, there is no intention to eliminate cash entirely. In fact, in 2024, the total value of Norwegian banknotes in circulation was reported at a remarkable 34.3 billion kroner.
As this debate unfolds, it will be imperative for the stakeholders involved, including the public, to weigh the consequences of these measures. The success of such initiatives lies not just in the numbers but in restoring faith in a financial system that aims to be both secure and accessible to all.
